Albany, NY -- (SBWIRE) -- 10/25/2018 -- An adequate supply of inorganic feed phosphates is needed for the proper development of animals, hence feed phosphates are used in all types of animal feeds across all animal species, and is not restricted to red meat/poultry alone. Because of the stringent requirement of feed phosphates as part of essential nutrition for the animals, the rippling effect of the feed phosphate market spans across multiple categories of animal husbandry which include, but are not limited to animal feeds, red meat, poultry, fish, dairy, fiber etc. The European Food Safety Authority (EFSA) has concluded in 2005 that excess of phosphorous intake does not cause ill effects on the human body unless the person is suffering from a kidney ailment. Therefore, more population has become liberal in using feed phosphate for animal nutrition. Increase in dispensable income and rising demand for meat based products in cumulation with attention towards the quality of the meat make developing countries such as India, China, Brazil, Argentina a hotspot for the feed phosphate market growth

Phosphorous is one of the most important trace elements in plant as well as animal composition. In case of animals, particularly the livestock, this required phosphorous is provided as a phosphate enriched feed supplement, i.e. with feed phosphate.

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Opportunities for market participants

Steady growth in population worldwide, increase in meat/ poultry based diet, rising concerns of the consumer over the quality of animal-derived products (meat, dairy, fiber) are all leading towards new opportunities in different regions, which are in favor of the growth of feed phosphate market. Improving dispensable income in developing countries means more of the population can lean towards meat-based diets can result in a rapid increase in demand for poultry and meat-based products which will directly facilitate the feed phosphate market growth.

Recently the demand from the European market has been high and has led to companies like De Heus to expand and open up new animal feed manufacturing facilities.

Technical awareness throughout the meat industry and dairy industry in developing countries means more people will opt for feed phosphate for proper nutrition of the cattle and reared animals, which will increase the demand in the developing countries. More and more industries are trying to meet the safety norms by investing in R&D and trying to develop new methods of manufacturing feed phosphates which is adding to the feed phosphate industry size.

The demand for feed phosphate rises owing to exponential growth in population in synergism with the food culture.

With a growing population and versatility of food preferences, the demand for high-quality meat products is also on a constant rise. Owing to the constant increase in demand for meat products, the livestock rearing has grown and with it, the demand for animal feed has increased. According To Food And Agricultural Organization Of The United States the growth in the number of major livestock has been on a constant rise since 1998. The demand for feed phosphate is further increased by the recent trend of increase in demand of high quality meat products. The upkeep of animal to produce high quality meat products in dependent upon proper nutrition, which will drive the demand for feed phosphate market higher. Apart from the food preferences, the dairy and natural animal-derived fiber industry are also hugely dependent upon the proper development of the animals to obtain a good quality product. Hence, feed phosphate plays an important role in the dairy and natural fiber market as well.

However, Increasing demands in contrast with the limited availability of phosphorous mineral has led the manufacturers to use different methods to cut down the use of phosphates and incorporate phytase into the feed in combination with plant-based phosphorous sources, which can prove to be a restraining factor for the inorganic phosphate supplies and in turn, the feed phosphate market.

Monocalcium phosphates to surpass dicalcium phosphates as the dominant feed phosphate in the global market

The global market for the feed phosphates is trade dependent. MCP (monocalcium phosphates) have been on the rise and because of the preference towards MCP because of it's high phosphorous bioavailablity, DCP (dicalcium phosphates) has seen a steady decline in the demand. China has been the major influencer for the growth of the feed phosphates over the last 15 years. In the light of the shift between the dominancy of DCP and MCP, the MCP global production share has seen a significant increase while the DCP global production share continues to decline.

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Global feed phosphate: A Regional Outlook

Feed phosphate has a high demand in Asia-Pacific, particularly China and India because of high livestock population. China also is the world's largest aquaculture producer and remains to be so China also is the largest producer of feed phosphates, in turn reducing the demand for feed phosphate through import/trade. Following the Asia Pacific, Latin America has Brazil and Argentina with a steadily increasing number of livestock population which can potentially lead to an increase in demand for feed phosphates. The U.S. is a large contributor to the livestock population of North America but the demand for phosphates have been declining in the region because of alternatives and substitutes such as phytase incorporated feed phosphates and spent grain. This has contributed to a price slash for feed phosphates in the region. In the eastern European region, Russia has been showing growth in feed phosphate demand recently.